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International Marketing by Ananya Choksi

Marketing in today’s world has become complex as many businesses now have their operations across continents. Mass marketing is now being replaced by focused marketing. Understanding the local marketing and keeping the sentiments of the different groups and communities in mind, marketing strategies require adaptation to the regional specifics.

Marketing and Dynamics of International Marketing

What is Marketing?

As per the American Marketing Association, “Marketing is the process of planning and executing the conception, pricing, promotion and distribution of ideas and services to create exchanges that satisfy individual and organisational objectives.”

Marketing entails the strategies and activities that businesses use to promote and sell their products or services. It involves understanding customer needs, creating value, and building strong relationships with consumers through various methods like advertising, market research, public relations, and sales strategies.

Importance of Marketing to Any Business

Marketing is critical to the success of any firm or organization. Once an idea is conceived, marketing plays an important role in delivering the end product or service to the consumer. A firm’s financial success often depends on how well a product is marketed and marketing creates demand for products and services help make profits. Other business functions such as finance, accounting and operations will not matter if there is not enough demand for a product.

Either a product or service is created as the organization believes it will be able to create a niche market for the product or it is created based on the consumer needs and to fill the gap between consumer demand and the product. This could be better summarized through the Ansoff Matrix chart below.

Marketing plays an important role as it through marketing that a business is able to create customer awareness about the product and what is the firm offering. It can build a brand if marketing is carried out well which in turn will drive the sales and the revenue of any business. Marketing helps to create a niche market for a new product and gives it the competitive advantage over its competitors. With right marketing skills a business can retain its customers and create brand loyalty.

FACTORS AFFECTING MARKETING TECHNIQUES

The marketing environment is influenced by a number of external elements such as the competitors, political and economic environment, social and cultural factors like use of language and holidays celebrated. These external forces are beyond the control of any organization but can have a profound impact on marketing success. However, these elements affect the sale of a product, how the product is sold and who will purchase them. Changes in an environment creates a market for new products and eliminates the old and existing products. Some of the factors that affect the marketing techniques are

i) Social factors

Changing social norms and demographics affect the market dynamics. Factors in the marketing environment correlate with changing social trends, consumer values and preferences. Let’s look at a few examples.

Mexico has seen a rapid population growth whereas Japan is now seen as country with aging population. The demand for milk, diapers, school supplies and toys would be more in Mexico whereas Japan would need more of adult products.

A demographic shift in women’s role in workforce[1] has had a profound effect on demand for childcare and consumer products and services that can save time and help to make life more convenient for families. From 1950 to 2000 there has been a 256.8 percentage change in women who have entered the labour force in the United States. This has driven up the demand for childcare and housecleaning services and products that save time in cooking and other household chores.

India has seen a growing trend in the rise in nuclear families. As per the Hindu, at the all-India level, 50 per cent of the were nuclear in 2022, as compared to 37 per cent of households in 2008.[2] This has given rise to premiumisation in choice of household products and also housing demand.

ii) Cultural factors

Culture is one of the fundamental determinants that provide a specific identification to its members. It includes nationalities, religions, racial groups and geographic regions. Companies capitalize on well thought out multicultural marketing strategies. One of them is localization. Localization can be of two types – content localization and product localization.

Content Localization refers to change the textual and visual content of a product or service like advertisements, user interfaces on the website keeping in mind the cultural nuances in a particular region

A business that wants to be a global enterprise needs to take the language needs of different regions into consideration. If an American brand wants to sell its products in a Japanese market, then it needs to ensure that it adapts and contextualizes the message in Japanese as it will resonate more with the people of Japan. It will ensure clarity and cultural relevance..

In India, a majority of the population does not speak English. According to a research, majority of the Indian internet users prefer to read in their native or regional language over English. The Navbharat Times, one of the leading newspapers in India, enabled its users to read the news in Hindi on its website. This showed an increase of 2.4 times from March 2019 to March 2022 reaching nearly 78 million visitors. In the last few years, it has enabled news reading in seven other languages.

Even companies like Facebook support 13 regional Indian languages. This has enabled the company to have the second highest number of users in the world after United States.

Product Localization means altering the features and the functionalities of a service or a product keeping in mind the local preferences, tastes and restrictions. For example, Domino’s in Malaysia ensures that it uses halal meat to meet the local dietary restrictions.

To increase global viewership and culturally relevant entertainment, Netflix creates original content in various languages and tailored for specific region. Sometimes if the content becomes very popular, it is provided with subtitles or dubbed in different languages.

McDonald’s, which has been around for more than sixty years can attribute its success to its localization efforts. In India, it excludes beef from its product and its menu is catered to the local palette and a lot of vegetarian options. In Japan it serves the “Teriyaki Burger” and in China it offers the “McLobster” sandwich, which features its locally sourced seafood.

iii) Political and Economic Factors

Marketers must work within the laws regulating the business practices and within the government policies. The economic factors such as the economic climate, inflation, taxation, shift in consumer spending all affect the marketing strategies adopted by companies.

Import quotas are placed to help the domestic suppliers and limit imports. This tends to increase prices of the imported products. For example, if a United States limits the number of Japanese car imports to three million a year, this would mean higher price for Japanese cars.

In Italy, Florence has banned new Airbnb listings in its historic centre and Italy is considering tightening the rules nationwide. In Amsterdam, a property can be rented for a maximum of 30 nights per year. This forces the company to revise its marketing strategy.[3]

Uber has committed to become a fully zero-emission platform by 2040 after environmental treaties and regulations were imposed by several countries.[4]

iv) Celebration of Holidays

The Black Friday sale after the Thanksgiving Holiday is one of the biggest event where most businesses resort different marketing campaigns to increase their sales and revenue. Different traditional and digital tactics are applied by small and large businesses to generate hype about different products.

During the festival of Diwali in India, many jewellers promote lucrative offers to promote sales for example they have zero jewellery making charges. According to Business Standard, Diwali sales in 2024 would hit 4.25 trillion.[5] a most recent study, which Business Today reported, indicates that e-commerce companies like Amazon, Snapdeal, and Flipkart sold goods valued at $3 billion over the course of the six-day festive sale this year. Diwali also kicks off the wedding season in India, marking the beginning of another opportunity to increase sales significantly through seasonal Diwali promotions.

v) Technological advancement

The advances in technology have made the marketing environment more exciting and rapidly changing environment. Computer software and artificial intelligence is used to design and make new products or redesign and alter existing products. Technological advances have also led to streamlining distribution and promotion of products.

With digital marketing relevant content can be delivered to the targeted audience or specific groups. The outreach of the campaign has increased widely and rapidly. Customers can now access media through various social media content through Facebook, YouTube, Instagram. A niche idea can be marketed easily and can get tremendous coverage.

MARKETING IN DIFFERENT REGIONS - US/UK/SINGAPORE AND ASIA ANALYSIS

Marketing techniques differ in different parts of the world. What may work in one country may not necessarily work in another country. A business that is looking to expand its global outreach needs to understand the cultural nuances, the local audiences, regulations within a country, the different social media platforms used. To grow in diverse markets, every business needs to tailor the marketing strategies that resonate with their target audiences.

United States

In the United States, digital marketing has a strong presence as the population is tech-savvy and has very high number of internet users. Several digital marketing channels like Facebook, Instagram, Twitter are popular way of making your presence felt in the market.

For example, Glossier, a beauty brand was a billion-dollar business within a decade. It used Instagram to reach its customers using a cool and casual tone to appeal its customers and bypassed the traditional offline marketing route. It has made the social media platform as two-way communication tool to get feedback from its customers and inform about product launches.

Modifying or customizing the products based on size, design and packaging is crucial to the US market. For example, most of the global food chains serve large portion sizes in the United States as compared to other global markets. At the same time, it is important to be aware of the various regulations imposed by different agencies.

Seasonal items are introduced to appeal the festive season and preferences. For example, Shamrock Shake, a green minty drink offered by McDonalds in the month to celebrate the St. Patrick’s Day is popular drink.

Brand reputation, quality and pricing go a long way in gaining the market share in the US. At the same time, they are also looking up to the companies that introduce environment friendly products. There is lot of investment made towards positive brand communication

U.S. consumers value brand reputation, quality, and authenticity. Building consumer trust is key to long-term success, especially as the U.S. is a market with high expectations for customer service and product quality. For example, Patagonia, a leading outdoor apparel brand is known for its long-lasting products. It has tapped in more consumers by contributing to environmental issues. In 2018, Patagonia donated $10 million received from President Trumps 2017 tax cuts as an initiative and commitment towards protection of the environment.[6]

Although Apple products have a premium pricing it has positioned itself in the market as a product with high-quality design and performance. To attract more customers and increase its sales it offers discount programs by trade-in deals.

United Kingdom

A business entering the UK market needs to customize its marketing strategy keeping in mind the cultural preferences and local tastes. The UK has diverse cultural groups across Scotland, Wales, Northern Ireland and England. This diversity can impact how messages may differ in tone and how the brands approach local marketing. In UK, there is a blend of both digital and traditional marketing channels.

Many food and beverage companies modify their flavors and packaging based on the local needs whether it is portion size or environmentally friendly packaging.

Like the United States, digital marketing has a strong presence in the UK as well. Most of the people in UK are e-commerce shoppers and look for products and services online or on social media platforms. Since there is a lot of web traffic, one of the approaches used by many marketers is paid search and search engine optimization (SEO) which can be a great marketing investment tool.

When it comes to advertisements, British consumers prefer advertising which contain humour, wit and subtlety. The tone of advertising is light-hearted but at the same time should also consider issues inclusivity.

The British also favour businesses that provide high-quality goods and are customer-friendly when it comes to product returns and general assistance. The country has strong consumer protection laws, so fair return policies are important in gaining customer loyalty and trust.

UK has a price sensitive market, and the retail and e-commerce sales are often driven by discounts and promotional offers. Tesco and Sainsbury’s often resort to competitive pricing strategies to increase their sales. During the Boxing Day or during Christmas, retailers often resort to lucrative discount offers.

Asian Countries

Most of the countries in Asia lay strong emphasis on family values.

China

In China, understanding and respecting the cultural differences, Chinese values and behaviour among different regions within the country is essential and plays a vital role. Therefore, Cross-cultural marketing is important to succeed in Chinese market. For maximum reach, marketing should be tailored in such a way so as to capture the cultural sensitivity which includes content and product adaptation.

It is equally important to choose the right marketing platform or channel. WeChat and Weibo are popular digital media platforms to effectively reach a larger Chinese audience. At the same time, the marketers must keep in mind the regulations and the restrictions imposed by the Chinese government.

Singapore

Marketing in Singapore which is a highly developed competitive market requires a blend of using the best global practices while acknowledging the marketing dynamics because of unique preferences and cultural values. Singapore is a multicultural society with people of different ethnicities. Marketing needs to be tailored in a way to appeal various mix of people with a keen understanding of the local culture, consumer behaviour, and market dynamics.

In Singapore, digital marketing plays an important role. Social media platforms like Instagram, Youtube, Facebook, Tiktok are used to promote good and services. Along with that influencer marketing has become a highly effective marketing tool. Collaboration with influencer who have a strong following is common to promote different products.

Marketing through traditional channel such as TV, radio and newspaper advertisements still hold a lot of appeal. Outdoor advertising on billboards, bus stops and train stations have proved effective. Along with that mobile are also effective ways to engage customers.

Customer satisfaction and experience hold utmost important. Singaporeans enjoy their seamless experience irrespective of online or offline medium.

India

Like its other Asian counterparts, outlining effective marketing strategy requires understanding the cultural diversity in India, the varying tastes and preferences of its population. It also requires understanding the change in the demographic scene and the rapidly expanding urbanization.

Most of the people in India are price sensitive. With a steady increase in high-speed internet connectivity, online retail marketing and social media platforms have become one of the prominent ways to market goods and services. Many people are now inclined towards online shopping. Also, celebrity and social media influencer marketing has gained popularity. Often messages and emails are effective for marketing in urban areas.

With viewership in millions across television and OTT platforms, another popular medium is television, radio and OTT platforms. Newspaper advertising is still a prominent medium of marketing in India especially in smaller cities and rural areas.

With over 100 languages, localized and regional advertising play a vital role in increasing customer engagement. Customer support for products and services in regional languages besides Hindi and English is now a common feature which enhances customer experience and satisfaction. At the same time, customizing and offering discounts during different festivals has proved to be successful marketing campaign.

SIMILARITIES AND DIFFERENCES IN MARKETING STRATEGIES IN DIFFERENT PARTS OF THE WORLD

While traditional marketing still is prevalent in most parts of the world, the invent of high speed connectivity, more and more reliance is being place on digital marketing. Marketing through social media platforms has shown an increasing trend through social media influencers and celebrities across different countries.

In most of the countries, the marketers should be sensitive of the religious, lingusitic and cultural practices followed by the different ethnicities and should ensure that they do not offend any group. Most of the companies adapt and try to build a deep connection with its target customers.

However, the main difference is in the type of advertisements. In the United States more emphasis are laid on marketing which lean towards individualism and there is hard selling about when it comes to the products as compared to United Kingdom where soft-selling tactics are applied.

Also, in many countries the regulatory environment is stringent, therefore the businesses also have to keep in mind the data privacy guidelines and the advertising and marketing guidelines.

Cultural messaging and values differ significantly, with U.S. and UK leaning toward individualism, and Asian countries emphasizing family, tradition, and community.

CONCLUSION

Marketing in today’s world has become complex as many businesses now have their operations across continents. Mass marketing is now being replaced by focused marketing. To successfully market one’s products and services, businesses often select their target markets and create a niche market.

At the same time, to have a presence in different world markets, intercultural dimensions and of marketing and understanding the regulations in any country are becoming more and more important. Marketing skills needs constant upskill as businesses are crossing borders in search of new competition. They now have face global competition. Understanding the local marketing and keeping the sentiments of the different groups and communities in mind, marketing strategies require adaptation to the regional specifics. This in the long run fosters brand loyalty and ensures overall market success.

BIBILOGRAPHY

https://asialinkbusiness.com.au/china/sales-and-marketing/marketing-in-china?doNothing=1

https://cm-brand.co.uk/news/marketing-strategies-attract-uk-consumers/

https://www.dynamiclanguage.com/unlocking-global-markets-success-stories-and-key-localization-strategy-examples/

https://econsultancy.com/how-glossier-has-used-instagram-to-create-a-cult-following/

https://elia-association.org/2023/05/multilingual-marketing-and-the-power-of-language/

E-marketing - The Essential Guide to Marketing in a digital world by Rob Stokes

https://www.theguardian.com/media-network/media-network-blog/2014/sep/29/technology-changing-marketing-digital-media

https://www.investopedia.com/terms/m/marketing-strategy.asp

https://kadence.com/en-us/market-entry-uk/

https://lokalise.com/blog/localization-examples/

Marketing by Courtland L. Bovee, Michael Houston and John V. Thill – 2nd edition